Answer to Question #42541 in Macroeconomics for bill

2014-05-15T02:37:46-0400

Question #42541

Read (technology sector at threshold of new world order) answer1, Is this the most efficient arrangement possible? Would it be more efficient if more firms could have produced Vista? Would Microsoft have spent the money to develop Vista if it didn't hold a patent-that is, if once it developed Vista (or any of the operating systems it has developed since), anyone could have produced and sold copies of the program?

2. Why is the retail market for PCs more competitive than a monopoly? In the article, sever at people in this industry complain about thinner profit margins. Can the retail market survive with the current level of profits? Do you expect there will be entry of more firms into the retail market? (Best Buy is having earnings trouble, but Best Buy has been on a rebound.)

3, One additional advantage Microsoft had was its ability to create a variety of Vista products, some of which had more features than others. Did it make sense for Microsoft to differentiate its product into basic and ultimate Vi

Expert's answer

2014-05-16T08:29:48-0400

1. Businesses can gain a number of cost andefficiency benefits by outsourcing particular functions to a third-party specialist, it has been claimed. Outsourcing helps businesses to focus on their core area of business, allowing them to develop key products or services and strategy. Businesses gain scalability when outsourcing. Contractual targets, such as a legally-binding contract with agreed key performance indicators ensures service delivery is met. Finally, outsourcing can increase your knowledge and provide access to specialists in a particular business area. Businesses can also see a greater return on investment as they can enjoy all the latest upgrades without further expense. Their IT investments are less likely to become outmoded or obsolete, because they simply pay for them on a subscription basis through a specialist vendor.

2.&nbsp;Monopolists cause harm to consumers by reducing output and raising price. The question of whether Microsoft acts like a monopolist and whether it causes harm to consumers should be crucial to the current DoJ case. What is the evidence?&nbsp;One answer, that appears consistent with all our findings, is that Microsoft worries about competitors even when it has a very large market share. Such concern about potential entrants might explain why Microsoft has not lost any markets it has gained. The decline of Lotus might have been due to an erroneous lack of such concern.

3. The differentiation strategies are also one of strategies that the Microsoft Corporation is implementing. The differentiation strategies are involves by making the product or services are different from the competitors and the product is also attractive from those of their competitors. Other than that, the products are offering by something new in the product, features, unique and valuable. According to Microsoft.com (2010), the Microsoft office has provided Microsoft hardware such as mouse, keyboard, cooling pad for laptop, mobile headset etc. This product is make Microsoft Corporation is different than othercompetitor beside provided operating software to the all distributors. In order to compete with the biggest competitors Apple.inc, Microsoft Corporation are also provided software for Mac such as Microsoft office Mac. This is one of strategy that Microsoft Corporation has using. With this strategy, Microsoft Corporation is able to make more profit and able to compete with other competitors in this industry.

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